By: Saneliso Mlambo
eThekwini recorded South Africa’s lowest metro unemployment rate at 21.2% in Q2 2026. The figure covers April to June 2026, according to Stats SA data cited by eThekwini Municipality.
The rate puts eThekwini ahead of Cape Town at 21.9%.
South Africa’s national unemployment rate increased to 33.6% during Q2. eThekwini’s unemployment rate fell by 5.6 percentage points year on year. It dropped from 26.8% recorded during the second quarter of 2025. The municipality said this was the sharpest decline among South Africa’s metros.
Employment also increased strongly across eThekwini during the same period. The number of employed residents rose to 1.29 million people. That represents an increase of 90,000 employed residents from Q2 2025.
Unemployed residents fell by 92,000 year on year to 347,000. The city’s absorption rate also improved from 44.2% to 46.9%.
Formal-sector employment reached 948,000 people during the second quarter. The broader labour underutilisation rate also improved to 40.2%. That measure includes discouraged work-seekers and people seeking additional hours.
The improvement comes as South Africa’s broader employment picture worsened. Nationally, the number of unemployed people increased by 345,000 to 8.5 million. Employment declined by 16,000 nationally during the second quarter.
Mayor Cyril Xaba credited infrastructure and investment efforts for eThekwini’s performance. He also cited industrial, tourism and investment facilitation initiatives supporting job creation.
Xaba warned that unemployment remains a major challenge despite the latest improvement. More than 340,000 eThekwini residents remain without jobs.
The municipality said it will continue prioritising infrastructure investment and small businesses. It will also strengthen partnerships with private companies to expand employment opportunities.
The latest figures give eThekwini the lowest unemployment rate among South Africa’s metros. However, the municipality says sustained job creation remains necessary to reduce unemployment further.